Steve and Bob are students at Berkeley College. They share an apartment that is owned by Bob. Bob is considering subscribing to an Internet provider that has the following packages available: Steve spends most of his time on the Internet ("everything can be found online now"). Bob prefers to spend his time talking on the phone rather than using the Internet ("going online is a waste of time"). They agree that the purchase of the $75 total package is a "win-win" situation. Package Per Month Requirements 1. Allocate the $75 between Steve and Bob using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. Which method would you recommend they use and why? A. Internet access 60 B. Phone services 20 2. C. Internet access + phone services 75
Steve and Bob are students at Berkeley College. They share an apartment that is owned by Bob. Bob is considering subscribing to an Internet provider that has the following packages available: Steve spends most of his time on the Internet ("everything can be found online now"). Bob prefers to spend his time talking on the phone rather than using the Internet ("going online is a waste of time"). They agree that the purchase of the $75 total package is a "win-win" situation. Package Per Month Requirements 1. Allocate the $75 between Steve and Bob using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. Which method would you recommend they use and why? A. Internet access 60 B. Phone services 20 2. C. Internet access + phone services 75
Chapter9: Obtaining Affordable Housing
Section: Chapter Questions
Problem 1FPC
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